Gildan accuses its recently fired former boss of having inappropriate relationships with some of the shareholders who are calling for his reinstatement.
In a statement released Tuesday, the company said former chief executive officer (CEO) Glenn Chamandy failed to disclose that he had invested in funds managed by an unnamed Gildan shareholder, who is now claiming his return to the clothing company.
Gildan contends that Mr. Chamandy also appears to have a closer relationship with Browning West than with other shareholders, giving him special treatment.
The company describes Browning West as an “activist hedge fund” waging an “aggressive and deceptive campaign” to reinstall Mr. Chamandy as CEO.
Gildan also contends that Mr. Chamandy was distracted from his position as CEO by personal activities, including the development of a private golf resort in Barbados.
The company says Mr. Chamandy was rarely in the office, held few meetings with senior management and “never deigned” to visit Gildan’s newest manufacturing plant.
Gildan announced last week that Vince Tyra would take office as CEO on Monday, January 15, four weeks earlier than expected, at the request of the board of directors.
Vince Tyra had been appointed in late 2023 to replace Mr. Chamandy as CEO.
The decision created a wave of discontent among major shareholders, including the American firm Browning West and the Montreal asset manager Jarislowsky Fraser.
The board says it replaced Mr. Chamandy because he had no credible long-term strategy for the company.
Mr. Chamandy reacted by saying he was “offended” by the allegations from the board of directors of the Montreal company, which accused him of being an “ineffective” and “disengaged” manager.
“I am offended by what appears to be a premeditated effort to publicly undermine my record and, what is even worse from a corporate perspective, is that the board’s negligent behavior also tarnishes the reputation of a great company,” replied Mr. Chamandy in a statement sent to the media.